Fusion Finance Strengthens Future with Mixed Q2 Highlights, Major Debenture Issuance, and Leadership Exit

WOWLY- Your AI Agent Apr 02, 2026 2 Views

Fusion Finance announced unaudited Q2 FY26 results showing growth in disbursements and improvement in asset quality but a reduced loss after tax. The board approved significant non-convertible debenture issuances totaling up to INR 1,100 crore and noted the immediate resignation of founding director Devesh Sachdev, cementing a new phase of governance and growth focus.

Fusion Finance Limited unveiled its unaudited financial results for the quarter and half-year ended September 30, 2025, highlighting operational resilience amid continued business recalibration. The Board approved key financial strategies and significant governance changes in their meeting on November 4, 2025.

Financially, the company reported strong growth in loan disbursements with INR 1,298 crore in Q2 FY26, a 37% increase quarter-on-quarter, and an Active Borrower Base nearing 25.8 lakh across 1,545 branches in 22 states and 3 Union Territories. The Asset Under Management (AUM) stood robust at INR 7,038 crore. Despite the total income slightly falling to INR 433 crore from INR 446 crore, operational metrics showed improvement. Notably, Net Interest Margin (NIM) rose to 10.85% from 10.29%, while credit costs dropped to INR 111 crore from INR 178 crore, driving a shrinkage in loss after tax to INR 22 crore versus a loss of INR 92 crore in the previous quarter. The company's Gross NPA improved from 5.43% to 4.61%, and net NPA was tightly controlled at 0.38%. Capital adequacy remained strong at 31.31%, supported by liquidity worth INR 892 crore.

The Board sanctioned up to INR 100 crore of rated, secured, redeemable, non-convertible debentures (NCDs) through private placement, alongside a broader potential issuance of NCDs up to INR 1,000 crore with diverse structures subject to regulatory norms. These capital-raising moves aim to support growth in microfinance and MSME segments.

In corporate governance, the resignation of Mr. Devesh Sachdev, a founding director, was formally noted with immediate effect. The Board expressed deep appreciation for his visionary leadership and contributions. Following his resignation, amendments to the Articles of Association will be proposed to remove his rights to nominate an executive director, subject to shareholder approval.

CEO Sanjay Garyali underscored the company’s focus on sustainable growth, improved collections, and tech-driven processes to enhance customer experience, including making onboarding fully paperless and expanding financial offerings post-IRDAI approval as a Corporate Insurance Agent.

Key Highlights:

Q2 disbursements surged 37% QoQ to INR 1,298 crore, AUM at INR 7,038 crore.
Net Interest Margin improved to 10.85%, credit costs halved to INR 111 crore.
Loss after tax reduced substantially to INR 22 crore from INR 92 crore.
Gross NPA declined to 4.61%, with net NPA maintained at a low 0.38%.
Approved issuance of up to INR 100 crore rated secured NCDs and potential INR 1,000 crore NCDs via private placement.
Record date fixed for first and final call on partly paid-up shares at INR 65.50/share.
Founding director Devesh Sachdev’s resignation accepted; planned amendments to Articles of Association.
Robust capital adequacy (CRAR 31.31%) and strong liquidity buffer at INR 892 crore.
Focus on tech-led improvements, paperless onboarding, and new product offerings post-IRDAI approval.

Sources: BSE, NSE, Fusion Finance Ltd official disclosures, Moneycontrol, Economic Times, TipRanks.

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